Star factor boosts IPL brand value to US$6.3BN

Star factor boosts IPL brand value to US$6.3BN
Rebecca Hawkes
| 10 August 2018

Star India’s record media rights deal has helped boost the Indian Premier League (IPL) ecosystem to US$6.3 billion making it one of the world’s hottest sports leagues, according to Duff & Phelps’ IPL Brand Valuation Report.
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In 2017, the IPL T20 cricket property was worth US$5.3 billion, however, the report suggests that the injection of the $2.55 billion media rights deal with 21st Century Fox-owned Star India, and the soaring over-the-top (OTT) viewing figures on its Hotstar platform has propelled the league to a more dominant position on the global stage.

“Star India’s broadcasting rights deal was a game changer that put IPL on par with some of the biggest sporting leagues in the world (on a fee per match basis),” said Varun Gupta, Duff & Phelps MD and Asia Pacific Leader for Valuation Services.

“The change in content consumption, influx of over-the-top (OTT) and digital viewing platforms and increased support from advertisers, broadcasters and sponsors have given the IPL greater significance in terms of brand value.”

IPL broadcast rights fees increased by a CAGR of 18.9%, following the five season deal with Star India. Under Star, content delivery expanded to various regional channels across the SIPL universe with commentary in eight different languages, rather than limiting the transmission to sports channels with just English commentary.

The Mumbai Indians, with a brand value of $113 million, continue to top the IPL team charts for the third season. Kolkata Knight Riders follow with a brand value of $104 million. Chennai Super Kings (CSK) are valued at $98 million alongside Royal Challengers Bangalore. Sunrisers Hyderabad, Delhi Daredevils, Kings XI Punjab and Rajasthan Royals follow in the brand rankings.

“Our IPL brand values report reflects the evolution of the modern cricket business paradigm with clubs benefiting from not only the enduring popularity of cricket in India but also from strong marketing and globalisation of the game. However, for growth trajectories to maintain their momentum, all teams need to continue broadening their footprint, forming relationships and generating revenue opportunities in growth markets,” said Santosh N, MD, Duff & Phelps.

“Ultimately, however, much of cricket’s future depends on ensuring the product is of a sufficiently high quality to continue attracting viewers, sponsors, and broadcasters, the latter of which has become a vital component for the game’s financial health.”